The most important factor driving the decline in the oil and gas market is a partial improvement in expectations regarding the transport of commodities from the Persian Gulf region.
Saudi Arabia increased oil exports in September to more than 4 million barrels per day versus around 2.4 million in August, and the market is also counting on a partial restoration of capacity on the East-West pipeline. CENTCOM leadership statements remain similarly optimistic, indicating that transfers have risen to the highest levels in six months.
There have also been hopes for diplomatic progress between the US and Iran. As a result, investors are reducing the risk premium linked to the conflict in the Middle East.
Even so, it should be remembered that production and shipping are still under constant pressure and the threat of shelling, and data, including on traffic through the Strait of Hormuz, remain inconsistent and limited.
- Oil is down about 3% today, and contracts are falling toward $100.
- European gas is also clearly cheaper, and the TTF benchmark has again fallen below EUR 80/MWh.
Investors are reducing the risk premium linked to the conflict in the Middle East.
OIL price chart (D1)
The oil price on the chart has already slipped by about 9% from the most recent peak, but the RSI [14] indicator is still above 50, and the first clear technical resistance can only be seen at the levels of the previous local peak around $94. Source: xStation5
Daily Summary: Optimism returns, chips rise, oil falls.
ARM Gains After CEO Comments, SoftBank Increases Financing
SEC eases regulations: Does Bitcoin and Strategy benefit the most?
US OPEN: Optimism in tech is back, NASDQ100 at its highest level in 3 months
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.